Lower Your Medicare Drug Costs: Extra Help in 2026

Prescription drugs are one of the biggest out-of-pocket costs for people with Medicare. If you have a limited income and limited savings, several government programs can dramatically lower — or even eliminate — what you pay for your medications and your Medicare premiums in 2026.

This guide explains the two main types of help: the Part D Low-Income Subsidy (Extra Help) and the four Medicare Savings Programs (MSPs), and how the rules differ in Alabama, Florida, Mississippi, and Georgia.

The Part D Low-Income Subsidy (“Extra Help”)

Extra Help is a federal program run by the Social Security Administration that lowers the cost of Medicare Part D prescription drug coverage. It can reduce or eliminate your Part D premium and deductible and cap what you pay at the pharmacy counter. In 2026, people who qualify pay no more than $12.65 for each covered drug.

Your eligibility is based on your income and resources — savings, investments, and other assets. Your home and car generally do not count. You can apply at any time, before or after you enroll in a Part D plan. Many people who qualify for a Medicare Savings Program are automatically enrolled in Extra Help, so it’s worth applying for both.

2026 Federal Extra Help limits

These are the same in all four states.

Lower copays in the last card apply to full-benefit dual eligibles at or below 100% of the federal poverty level. Income figures include the $20 monthly disregard — some sources publish the bare 150% FPL figure ($23,940 single / $32,460 couple) instead, which is why you may see slightly different numbers elsewhere. Assets exclude your home, one vehicle, and a $1,500 per person burial allowance.

Apply or learn more:

• Apply online with Social Security: ssa.gov/medicare/part-d-extra-help
• Extra Help overview: medicare.gov/basics/costs/help/drug-costs
• Call Social Security: 1-800-772-1213 (TTY 1-800-325-0778)

Medicare Savings Programs (MSPs)

Medicare Savings Programs are run by each state’s Medicaid agency and help pay your Medicare Part A and/or Part B premiums, and sometimes your deductibles, coinsurance, and copayments. If you qualify for an MSP, you also automatically get Extra Help for your drugs.

• Qualified Medicare Beneficiary (QMB): Helps pay Part A and Part B premiums, deductibles, coinsurance, and copayments.
• Specified Low-Income Medicare Beneficiary (SLMB): Helps pay the Part B premium.
• Qualifying Individual (QI): Helps pay the Part B premium. You must reapply each year; approved first-come, first-served.
• Qualified Disabled & Working Individual (QDWI): Helps pay the Part A premium for certain working people with disabilities.

2026 MSP limits by state

The federal government sets the baseline, but each state administers its own Medicare Savings Programs, and some raise the income limits or waive the asset test entirely.

The four states below are the ones we get asked about most. Don’t assume other states follow the federal limits — several don’t. Indiana’s are far higher (QMB $2,015 single / $2,725 couple), Illinois uses a $25 disregard, and Louisiana has no asset limit at all. If you’re outside these four, check with that state’s Medicaid agency.

Alabama

Alabama has no asset test for these programs. Income limits shown are monthly and include the standard $20 disregard.

Florida

Florida uses the federal asset limits. Income limits shown are monthly and include the standard $20 disregard.

Mississippi

Mississippi has no asset test, and its income limits are genuinely higher than the federal ones — the state uses a $50 disregard where most use $20. These figures are correct, not a typo. Mississippi removed the resource test for QMB, SLMB and QI effective July 1, 1999 (MS Division of Medicaid, Eligibility Policy and Procedures Manual, Chapter 400).

Georgia

Georgia uses the federal asset limits. Income limits shown are monthly and include the standard $20 disregard.

Enrollees in QMB, SLMB, or QI automatically qualify for full Part D Extra Help. QI is first-come, first-served and cannot be combined with full Medicaid. If only one spouse is on Medicare, the applying spouse uses the single limit but combined income must stay under the couple limit (Alabama rule; similar elsewhere).

QMB = ≤100% FPL • SLMB = 100–120% FPL • QI = 120–135% FPL

How to take action

• Apply for Extra Help with Social Security at ssa.gov/medicare/part-d-extra-help or call 1-800-772-1213.
• Apply for a Medicare Savings Program through your state Medicaid agency.
• Even if you think you earn too much, apply anyway — your state may not count all of your income or resources.
• Free personalized help: Contact your State Health Insurance Assistance Program (SHIP) at shiphelp.org or call 1-800-MEDICARE.

Sources: NCOA MSP Eligibility & Coverage chart (Mar 2026); NCOA Part D LIS chart (Feb 2026); CMS CY2026 LIS Resource Limits memo (Oct 2025); SSA POMS HI 00815.023 (Feb 2026); Alabama Medicaid Form 207 (2026); Mississippi Division of Medicaid; Florida DCF; Georgia Medicaid.

Program rules and limits are updated regularly — verify current amounts and eligibility with the official sources linked above before applying.

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We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov or 1-800-MEDICARE to get information on all of your options.

This content is for general educational purposes and is not a complete description of benefits. Contact the plan for more information. Medicare Compare Agency, 2201 Providence Park, #150, Birmingham, Alabama 35242.